Intel Signs On to Musk’s Terafab AI Chip Megaproject

Key Moments

Intel Joins Ambitious Terafab Chip Initiative

April 7 (Reuters) – Intel said on Tuesday it would participate in Elon Musk’s Terafab artificial intelligence chip complex, joining SpaceX, Tesla, and xAI in the project.

Terafab is being developed as a large-scale chip manufacturing hub, bringing together Musk’s companies with Intel’s semiconductor capabilities.

Details of Musk’s Austin AI Chip Factories

Last month, Musk said his rocket company SpaceX – which recently merged with his social media and artificial intelligence company xAI – and EV firm Tesla would build two advanced chip factories at a sprawling facility in Austin, Texas. One facility is intended to supply chips to power cars and humanoid robots, while the other is aimed at supporting AI data centers in space.

SpaceX, which confidentially filed for a U.S. initial public offering last week, plans a market launch later this year.

Intel’s Role and Capacity

In a post on social media platform X, Intel highlighted how its manufacturing strengths align with Terafab’s objectives. The company stated: “Our ability to design, fabricate, and package ultra-high-performance chips at scale will help accelerate Terafab’s aim to produce 1 terawatt per year of compute to power future advances in AI and robotics,” Intel said in a post on social media platform X.

Market Reaction

Investors responded positively to the announcement. Shares of Intel were up about 2% in early trading. They have risen around 38% so far this year.